Plaintiff Jessica Ponkey has prevailed in an enchantment in opposition to a call to shut her LuLaRoe class-action.
Ponkey’s class-action was closed final yr, following a Remaining Arbitration Award issued in April 2022.
Ponkey filed an enchantment with the Ninth Circuit on Might twenty seventh.
On July thirty first, 2023, the Ninth Circuit issued a memorandum, ordering the arbitration proceedings be reversed.
In handing down their resolution, the Ninth Circuit decided LuLaRoe compelled arbitration to resolve Ponkey’s case “in an inferior discussion board that work[ed] to LuLaRoe’s benefit”.
Due to this fact, we conclude that the events’ arbitration settlement is unenforceable underneath California’s sliding-scale strategy, and we additionally conclude that the district courtroom can not sever the offending phrases to protect the settlement’s enforceability.
As a result of we conclude that the arbitration provision is unenforceable, we want not attain the problem of whether or not the district courtroom erred in compelling arbitration in opposition to the non-signatory defendants.
With arbitration unenforceable, Ponkey’s case returns to the Central Distric tof California.
As of August twenty third, there aren’t any additional entries on Ponkey’s class-action docket.
Ponkey sued LuLaRoe again in March 2021, alleging the MLM firm operated as “an illegal, fraudulent pyramid scheme”.
Keep tuned for updates as BehindMLM continues to trace the reopened case.